Stocks rebound as FBI clears Clinton
Stocks rebound as FBI clears Clinton
Shares rebounded yesterday from a three-day decline on both local exchanges on higher investor confidence after the US authorities cleared Hillary Clinton of criminal charges, boosting her chances in the looming presidential election.
The benchmark VN Index on the HCM Stock Exchange added 1.1 per cent to close at 674.14 points, after falling 1.5 per cent during the previous three sessions.
The HNX Index on the Ha Noi Stock Exchange gained 0.8 per cent to end at 81.09 points, recovering from a three-day loss of 2.2 per cent.
The market opened a new trading week with higher sentiment after the Federal Bureau of Investigation (FBI) on Sunday said no charges would be brought against Hillary Clinton, who is running to be the next US President.
"The news sent Viet Nam's stock indexes higher during yesterday's session while the world's stock markets also had a positive trading day," BIDV Securities Corp (BSC) wrote in its daily report.
It also boosted the chances for Hillary to win the US Presidential election, which takes place today. "If Hilary wins the election, the world's stock markets will benefit from her win in the short term," Bao Viet Securities Corp (BVSC) said in a note.
Better investor sentiment boosted the performance of finance-banking stocks yesterday. Among nine listed banks, six made gains, with Vietcombank (VCB) being the best gainer with a jump of 3.6 per cent.
Other financial stocks such as insurer Bao Viet Holdings (BVH), BIDV Insurance Corp (BIC), HCM Securities Corp (HCM), Sai Gon-Ha Noi Securities Corp (SHS) and Sai Gon Securities Inc (SSI) also advanced.
The energy sector also contributed to the market's gains after Russia said it would co-operate with the Organisation of Petroleum Exporting Countries (OPEC) to reduce crude production and help re-balance the market.
US crude West Texas Intermediate (WTI) bounced back 1.6 per cent from a six-day fall of 11.4 per cent last week to trade at US$44.77 a barrel. London-traded Brent crude also recovered from a similar losing streak to trade at $46.16 a barrel.
Top oil and gas producers on the stock market increased, such as PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Services Corp (PVD) and PetroVietnam Technical Services Corp (PVS). Those stocks were up 2.4 per cent, 1.1 per cent and 1.7 per cent, respectively.
Market trading liquidity remained low compared to last week's daily average trading with more than 135.6 million shares in trading worth VND2.04 trillion ($90.67 million) as investors were unwilling to make investments following some estimates saying that total margin lending in the market was about VND22 trillion, an increase of 20 per cent from the beginning of the year.
